AI is gobbling up the world’s memory chips, sending smartphone prices to record highs, report says
AI is gobbling up the world’s memory chips, sending smartphone prices to record highs, report says
https://www.cnn.com/2026/02/27/tech/ai-memory-chips-smartphones-intl-hnk
Publish Date: 2026-02-27 02:01:00
Source Domain: www.cnn.com
- The global shortage of memory chips due to increased demand from the artificial intelligence (AI) boom has caused a “tsunami-like shock” in the smartphone industry, pushing prices to all-time highs.
- A report by the International Data Corporation (IDC) predicts that the average selling price of smartphones will rise by 14% this year to $523 and that sales will decline by 12.9% in 2026 to 1.12 billion units, the lowest level in over a decade.
- Memory chip manufacturers have shifted their production focus to high bandwidth memory (HBM) chips for AI, leaving less supply available for consumer electronics like smartphones.
- The shortage is expected to permanently affect smartphone manufacturers, particularly smaller companies, while larger firms like Apple and Samsung may seize the opportunity to increase their market share.
- Analysts predict the memory chip shortage will persist well into next year, with implications for various sectors dependent on memory chips, including automotive and consumer electronics.
